HomeMy WebLinkAbout5204 - Newport Bay Company Consent of AssignmentsI 4. a
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3/28/60
RESOLUTION NO. ! ^204
• A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH APPROVING ASSIGNMENTS OF A LEASEHOLD
ESTATE BY DEEDS OF TRUST AND AUTHORIZING THE
• EXECUTION OF A CONSENT TO SUCH ASSIGNMENTS
WHEREAS, the City of Newport Beach has entered into a
lease dated March 24, 1948, with The Newport Bay Company, a Califor-
nia corporation, which lease has since been amended by instruments
dated April 10, 1950, September 29, 1952, and March 28, 1960, cover-
ing the premises in the City of Newport Beach now occupied by the
Balboa Bay Club; and
WHEREAS, one of the provisions of said lease provides that
said lease may.not be assigned without the consent of the City of
Newport Beach; and
WHEREAS, The Newport Bay Company desires to assign its
leasehold estate under said lease by certain deeds of trust to
secure certain indebtedness, which deeds of trust are more particu.-
larly described as follows:
1. "A" - being a deed of trust and mortgage of chattels
to be given by The Newport Bay Company, a California corporation,
as trustor, to Title Insurance and Trust Company, a California
corporation, as trustee, in favor of the Lamar Life Insurance
Company, a Mississippi corporation, as beneficiary, as security
for the payment of an indebtedness in the sum of $158,417.00.
2. "B" being a deed of trust and mortgage of chattels
to be given by said The Newport Bay Company, as trustor, to said
Title Insurance and Trust Company, as trustee, in favor of Atlantic
Life Insurance Company, a Virginia corporation, as beneficiary, as
security for the payment of an indebtedness in the sum of $414,691.02.
3. "C" r being an amended deed of trust and mortgage of
chattels to be given by said The Newport Bay Company, as trustor,
to said Title Insurance and Trust Company, as trustee, in favor of
said Atlantic Life Insurance Company, as beneficiary, as security
for the payment of an indebtedness in the original pri=ncipal amount
of $300,000.00, subsequently reduced to $120,000.00, said amended
TA
deed of trust and mortgage of chattels being an amendment and modi-
fication of a prior deed of trust and mortgage of chattels, both
dated February 11, 1954, given by The Newport Bay Company, as trustor,
• to Orange County Title Company, as trustee, in favor of said Atlantic
Life Insurance Company, as beneficiary, securing said indebtedness in
the original amount of $300,000.00.
4. "D" - being a deed of trust to be given by said The
Newport Bay Company, as trustor, to said Title Insurance and Trust
Company, as trustee, in favor of said Lamar Life Insurance Company
and said Atlantic Life Insurance Company, as joint beneficiaries,
as security for the payment of indebtedness evidenced by two promis-
sory notes, each in the sum of $113,166.39; and
WHEREAS, it is contemplated that the foregoing deeds of
trust and obligations secured thereby will be assumed by Wrather
Investment, Inc., upon the assignment of said lease by The Newport
Bay Company to Wrather Investment, Inc., which said assignment is
being approved on this date by the City Council; and
WHEREAS, it appears to be in the best interests of the
citizens of the City of Newport Beach that the City consent to
the assignments of said leasehold estate by the deeds of trust
enumerated above;
NOW, THEREFORE, BE IT RESOLVED that the City of Newport
Beach hereby consents to the assignments of said leasehold estate
by deeds of trust particularly hereinabove described; provided,
however, that such consent and the deeds of trust and each of them
are subject to the following:
(a) That except as herein otherwise provided, said
assignments and all rights now or hereafter acquired
• thereunder are, and each shall be subject to each and
all of the covenants, conditions and restrictions set
forth in said lease, and to all rights and interests of
Lessor therein, none of which are or shall be waived by
said consent;
(b) That should there be any conflict between the
provisions of said lease and the provisions of any of
said assignments, the former shall control;
(c) That if the leasehold estate of said Lessee
shall be foreclosed or otherwise acquired under any one
2.
A !
or more of said assignments, the transferee or transfer-
ees thereof shall thereupon and thereby assume the perm
formance of and shall be bound by each and all of the
• covenants, conditions and obligations provided in said
lease to be performed and observed by the Lessee;
• (d) That the City of Newport Beach agrees that it
will not terminate said lease because of any default or
breach thereunder on the part of the Lessee if the
holders of said assignments, or any of them, within
thirty (30) days after the service of written notice
from said Lessor of its intention to terminate said
Tease for such default or breach, shall either cure such
default or breach, if the same can be cured by the pay-
ment of money, or if otherwise, shall undertake in
writing with and for the benefit of said Lessor, to
keep and perform all of the covenants and conditions of
said lease provided therein to be kept and performed by
the Lessee, until such time as said leasehold shall be
sold upon foreclosure pursuant to said assignments, or
any of them, or shall be released or reconveyed there-
under; provided, however, that if the holder of the
trust deed shall fail or refuse to comply with any and all
of the conditions of this subparagraph (d), then and there-
upon said Lessor shall be released from the covenant of
forbearance herein contained; and any notice provided for
in this subparagraph (d) shall be served in the same manner
as provided in said lease for the service of notices, and
shall be delivered or directed to the holder of the trust
deed at its address as last shown on the records of Lessor;
(e) That the City of Newport Beach assumes no liability
or responsibility for the order of priority of said deeds of
trust or the relation of one to the other, or any of them;
(f) That upon and immediately after the recording of
the trust deed, said Lessee, at its own expense, shall cause
to.be recorded in the office of the Recorder of Orange County
a written request executed and acknowledged by said Lessor
for a copy of any notice of default and of any notice of sale
under the trust deeds as provided by the statutes of the State
of California relating thereto. Concurrently with the execu-
tion of said consent said Lessee shall furnish to said Lessor
a complete copy of the trust deeds and the notes secured
thereby, together with the names and addresses of the holders
thereof;
and provided further that the consent hereby granted shall not be
deemed to be a consent to any other or further assignment or en-
cumbrance of said leasehold estate or any part thereof.
BE IT FURTHER RESOLVED that the Mayor and City Clerk be
• and are hereby authorized and directed to execute a consent to the
• assignments of the leasehold estate by the above - mentioned deeds
of trust.
ADOPTED this 28th day f March, 19
ATTEST °' i Mayor
City Clerk
0
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF NEWPORT BEACH)
I. MARGERY SCHROUDER, City Clerk of the City of Newport
Beach, California, do hereby certify that according to the records
of the City of Newport Beach filed and maintained in my office,
the foregoing Resolution
Noe 5204
was duly and
regularly adopted, passed, and approved by the City Council of
the City of Newport Beach, California, at a regular meeting of
said City Council held at the regular meeting place thereof, on
the 28th day of March , 19 60 , by the following
vote, to wit:
AYES, COUNCILMEN: Kingsley, Atkinson, Higbie, Stoddard,
.Hart, Lorenz, Somers
NOES, COUNCILMEN: None
ABSENT, COUNCILMEN: None
Dated this 30th day of March , 19 60,
City ClerR anj Ex-Officio Clerk of
City Council, City of Newport Beach,
State of California.